The New Zealand dairy co-operative is shifting its strategy towards B2B operations following the sale of a subsidiary to Lactalis.

Fonterra has completed the sale of its subsidiary Mainland Group to the French dairy company Lactalis as of 31 March 2026. The transaction was approved by shareholders in autumn 2025 and has now been finalised.

According to Chairman Peter McBride, the divestment marks an important step towards a more focused business.

Strengthening focus on ingredients and foodservice
With the sale, Fonterra is setting a clearer strategic direction, with resources and investments to be concentrated on the ingredients and foodservice segments going forward.

Chief Executive Officer Miles Hurrell points out that these segments will drive value creation for the co-operative’s shareholders.

“Lactalis will become one of our most important ingredients customers, while we continue to supply milk and other products to the divested activities,” he says.

At the same time, a long-term partnership is being established between the two companies, with Lactalis set to become a significant customer in Fonterra’s ingredients business.

Part of a broader development
The divestment of Mainland Group is in line with a development where ingredients and B2B operations are gaining greater prominence among several international dairy companies.

For Fonterra, this means a sharper profile as a global supplier of dairy ingredients, while access to end markets will increasingly be managed through partnerships.

Fonterra maintains its earnings expectations for 2026 and aims to return to 2025 levels by 2028.

By Maja Løvstrup
Source: Effektivt Landbrug
Photo: Fonterra